UAE VAT Compliance New FTA Verification Requirements Take Effect 1 October 2026

New FTA Decision: What Changes from 1 October 2026?

The Federal Tax Authority issued Decision No. 13 of 2026 today, that provides further detail on the verification of the validity and integrity of supplies Taxable Persons receive.

The Decision builds on Article 54 bis of the UAE VAT Law, which came into effect on 1 January 2026 and introduced the framework under which input tax may be denied where a taxable person knew, or should have known, that a supply was connected with tax evasion. Applicable from 1 October 2026, the new Decision sets out the measures, procedures and conditions taxable persons must follow when carrying out the required verifications.

The significance goes beyond input VAT recovery at the time of filing a VAT return. Businesses will need to consider how the requirements affect:

• Supplier onboarding, verification, and risk assessment 
• Procurement and accounts payable controls 
• Invoice review, VAT coding, and recovery determination 
• Supporting documentation and audit trails

With a limited period before the Decision becomes applicable, businesses should assess whether these requirements are appropriately reflected in their existing processes and VAT control framework.

For further information on the Decision and its practical implications, please contact us at info@bakertilly.ae.